Addressing the nation on India's 68th Independence Day, Hon'ble Prime Minister Shri Narendra Modi urged the industry, especially the Micro, Small and Medium Enterprises (MSMEs) of India, to manufacture goods in the country with "zero defects" and to ensure that the goods have "zero effect" on the environment.

ZED has presented a model where the concept of quality has a holistic change from a tool for compliance to a source of competitiveness. Operationally, it is meant to evolve from a total dependency on inspection of the final product to correct defects, to a proactive process of improving processes like quality planning, product and process designing, optimum processes, efficient resource management, effective outsources activities and breakthrough outcomes. Along with a focus on quality of products and services, there is an equal emphasis on the elimination of impact on the environment through adequate planning at product and process design, pre-production (start-up activities), production and maintenance activities, post production (disposal after use) and outcome of environment performance. Overall, the net result is sustainable development.

The ZED scheme is an integrated and holistic certification system that will account for quality, productivity, energy efficiency, pollution mitigation, financial status, human resource and technological depth including design and IPR in both products and processes. The parameters of the scheme will cover all aspects of the existing schemes of Ministry of MSME: Quality Management System (QMS) / Quality Technology Tools (QTT), Lean Manufacturing Competitiveness Programme (LMCS), Design Clinic and Technology and Quality Up-gradation (TEQUP), and Building Awareness on Intellectual Property Rights (IPR).

Benefits of ZED Scheme for MSMEs

Credib le recognition for international investors seeking investment in India.

Part of supply chain of national &international OEMs.

Streamlined operations and lower costs.

Superior quality, reduced rejection and higher revenues.

Increased environmental consciousness and social benefits.

Zed Mark to enable an MSME to be seen as a company with a difference.

KBS provides Rating services throughout India from its head office based at 414-424, Om Shubham Tower, Neelam-Bata Road, NIT, Faridabad, Haryana. The process is defines as under:

1. Pre Certification Process

1.1 Registration of MSME

MSME interested to participate in ZED certification process have to register their Unit online by completing the Registration Form available on web portal of ZED http://zed.org.in. There is no fees to be paid by MSME for registration.

1.2. Certification Process

1.2.1 Online Self-Assessment:
1.2.1.1 MSME interested to participate in ZED certification process have to take online self- assessment as a first step through prescribed check list maximum by three chances after registering their Unit online on http://zed.org.in. There is no fees to be paid by MSME for participating in online self-assessment. There will be systems generated report for every online self-assessment attempted by MSME.
1.2.1.2 The Application Forms shall clearly indicate if any activities covered under the criteria for certification are carried out at any premises other than the plant location to enable covering the same under assessment.

1.3 Desktop Assessment:

1.3.1 QCI shall assign a suitable competent empaneled Desktop Assessor from its pool of approved Desktop Assessors or Rating Agencies for desktop assessment activity.
1.3.2 Applicant MSME shall pay a fee for desktop assessment as per approved fee structure along with the evidences required as per the online self-assessment.
1.3.3 The desktop assessment activity shall be completed with stipulated time as per the norm and the report is finally submitted to applicant MSME in either case, eligible or non-eligible for onsite assessment.
1.3.4 In case an applicant MSME is compliant to criteria, it shall be informed by QCI along with report and the onsite assessment is recommended.

1.4 Onsite assessment:

1.4.1 The recommended applicant MSME shall pay a fee for onsite assessment as per approved fee structure and shall be assigned to QCI approved Rating Agency (KBS) for onsite assessment based on approved competency of RA(KBS).

1.4.2 Assessment Team Selection: KBS shall assign the qualified ZED Assessor team as per the defined competence criteria and type/scope of MSME. The on-site assessment to be conducted with minimum two qualified ZED Assessors, supported by technical experts, if needed. The team selected shall be such, so as to be competent to assess all the applicable parameter opted by MSME (Unit). One of the assessors must have competency in the environmental aspects/ areas. For defence sector scope, the assessor must have minimum of 5 years of work experience in defence field in addition to other competence required.

1.4.3 On-site Assessment Time:
The on-site assessment shall be carried out at MSME for minimum 3 man-days in Micro, minimum 4 man-days in Small and minimum 5 man-days in Medium type enterprise. The assessment time includes the on-site time at the organization’s location, assessment planning and document reviewing and reporting. The assessment man days are based on 8 hours per day. Adjustments may be required based on local, regional, or national legal requirements. On-site assessment and Desktop assessment reports will be made available to assessment team in advance.

1.4.4 Opening Meeting:
A formal opening meeting, shall be held with the MSME’s management and, where appropriate, those responsible for the functions or processes to be assessed. The purpose of the opening meeting, usually conducted by the assessment team leader, is to provide a short explanation of how the assessment activities will be undertaken. During the opening meeting, the Team leader shall collect information on the situation and on changes concerning MSME, equipment, raw materials, processes and anything else relevant.

1.4.5 Onsite assessment will be based on specific ZED certification requirements. The assessment is app-based and in accordance with check list provided by QCI.

1.4.5.1 During the assessment, the assessment team shall periodically check assessment progress and exchange information. The assessment team leader shall re-assign work as needed between the assessment team members and periodically communicate the progress of the assessment and any concerns to the MSME.
1.4.5.2 When conducting onsite assessment, the assessor shall collect and verify evidence related to performance of various processes/activities of the MSME as per ZED certification module / parameter which includes as a minimum:
— Operational control;
— Monitoring measurement and analysis
1.4.5.3 During the assessment, information relevant to the assessment objectives, scope and criteria (including information relating to interfaces between functions, activities and processes) shall be obtained and verified to become assessment evidence.
1.4.5.4 Methods to obtain information shall include, but are not limited to: a) interviews; b) observation of processes and activities; c) review of documentation and records

1.4.6 Safety during assessments

1.4.6.1 The assessment involves risks linked to the need to travel to work environments. Responsibility for risk analysis and the identification of the most suitable means of protection is of the MSME that manages the building or factory.

1.4.6.2 However, assessors must have personal protective equipment which may be reasonably required to run in the security checks. In particular, each assessor must go to the sites to verify with at least:
a) helmet;
b) safety shoes;
c) goggles;
d) ear protectors;
e) high visibility vest

1.4.7 Closing Meeting: A formal closing meeting, where attendance shall be recorded, shall be held with the MSME’s management and, where appropriate, those responsible for the functions or processes assessed. The purpose of the closing meeting, usually conducted by the assessment team leader, is to present the assessment conclusions.

1.5 Site Assessment Report:

1.5.1 The rating agency shall provide a system generated report for onsite assessment to QCI. Ownership of the assessment report shall be maintained by the rating agency.

1.6. Certification Decision by Rating Committee (RC)

5.6.1 The submitted report shall be reviewed for decision on certification by Rating Committee of QCI, if found suitable. For any clarification on report, KBS team shall provide further information as required by Rating Committee. For each accepted reports, KBS shall be paid for the onsite assessment conducted as per the fee structure.